(Updates prices) 
    By Lewa Pardomuan 
    SINGAPORE, Feb 28 (Reuters) - Gold firmed on Thursday, 
hovering within sight of a record high hit the previous day, 
while speculators sold platinum as they waited for new 
developments in South Africa's supply problems. 
     Gold <XAU=> rose to $958.10/958.90 an ounce from 
$957.50/958.30 late in New York. Gold rallied to an all-time high 
of $964.70 an ounce on Wednesday as the dollar tumbled against 
other currencies on possible U.S. interest rate cuts. 
    Gold has gained around 15 percent in 2008 on investor buying 
driven by record high crude oil <CLc1> and the prospect of more 
interest rate cuts, which raised the metal's appeal as an 
alternative investment. 
    The upside target was pegged by dealers at $1,000 a an ounce. 
    "In times of sharp rises in prices, it's a must to remember 
there are plenty of investors and traders waiting to re-enter on 
dips," said Pradeep Unni, analyst at Vision Commodities in Dubai. 
    "The Federal Reserve is likely to slash rates further on 
March 18, propelling gold further north. Multiply closing above 
$950 would mean sustained gains in coming days." 
    The dollar held near record lows against the euro as a sharp 
drop in durable goods orders and home sales fueled recession 
concerns while Fed Chairman Ben Bernanke signalled a readiness to 
cut interest rates again. [ID:nT78528] 
    "It's clear that investor interest in commodities as a whole 
remains very strong with particular interest from the pension 
funds who look for return in commodities when many other markets 
are either too volatile or are falling," said Investec Australia. 
    In other precious metals, silver held near a 27-year high, 
palladium fell below Wednesday's 6-1/2-year high, while selling 
in Japanese futures put pressure on cash platinum. 
    Platinum <XPT=> dipped to $2,120/2,127 from $2,130/2,140 an 
ounce late in New York. It rallied to record of $2,192 on Feb. 22 
in another round of speculative buying as persistent power supply 
problems disrupted mining in South Africa, the world's main 
producer. 
    "Recently, we haven't heard any fresh news from South Africa. 
That's why speculators decided to take profits," said a dealer in 
Tokyo. 
    "The Tokyo stock market is also falling sharply, which 
triggers selling in other TOCOM contracts. I guess speculators 
want to get some cash," he said. 
    In January, the world's biggest platinum and major gold 
mines were forced to halt output for five days as South African 
power utility Eskom restricted mining firms to 90 percent of 
their normal consumption, leading metal producers to forecast 
declines in output. 
    The most active February 2009 contract <0#JPL:> on the Tokyo 
Commodity Exchange ended the morning session 166 yen per gram 
lower at 7,091 yen, with a firmer yen against the dollar also 
spurring liquidation. 
    Silver <XAG=> edged up $19.24/19.29 an ounce from 
$19.22/19.27 an ounce, having reached a 27-year peak of $19.45 on 
Wednesday. Palladium <XPD=> fell to $547/552 an ounce from 
$550/552 late in New York on Wednesday. 
  Precious metals prices at 0212 GMT 
 Metal             Last    Change  Pct chg  YTD pct chg  Turnover 
 Spot Gold         958.10    1.10   +0.11     15.06 
 Spot Silver        19.24    0.02   +0.10     30.26 
 Spot Platinum    2120.00  -10.00   -0.47     39.47 
 Spot Palladium    547.00   -3.00   -0.55     48.64 
 TOCOM Gold       3303.00  -16.00   -0.48      7.94        34977 
 TOCOM Platinum   7091.00 -166.00   -2.29     32.82        15291 
 TOCOM Silver      664.20   -4.60   -0.69     22.77          848 
 TOCOM Palladium  1955.00  -15.00   -0.76     44.71        13104 
 Euro/Dollar       1.5099 
 Dollar/Yen        106.34 
 TOCOM prices in yen per gram, except TOCOM silver which is 
priced in yen per 10 grams. Spot prices in $ per ounce. 
 (Reporting by Lewa Pardomuan; Editing by Michael Urquhart) 
 (([email protected]; +65 6870 3834;  Reuters 
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Keywords: MARKETS PRECIOUS UPDATE 1